Two Buck Chuck is $2 because Bronco can sell directly to the retailer Trader Joe Outside of CA Bronco is required to go through a distributor/wholesaler. The added layer creates the added price, Also, the farther away, the greater the shipping costs. But it is primarily the three tier system the states impose that causes the higher price.

What Hoke says has been historically true as Washington State wine prices have been driven up by its three-tier system. Now as a result of a recent voter referendum retailers can buy directly from wineries, but I don't know if Trader Joe's is doing that for their Three-Buck Chuck. When the referendum passed our hope was that wine prices would fall, but the most noticeable effect has been an increase in hard liquor prices thanks at least in part to the demise of state liquor stores and the implementation of stiff state taxes. But I defer to Hoke as he understands the system better than I do.